Islamabad: Pakistan has inked a $2.3 billion loan facility agreement with a Chinese consortium of banks amid draining foreign exchange reserves and rupee depreciation on Wednesday.

Chinese consortium of banks have extended loan facility to Pakistan proved once again that China is a true and time tested friend of Pakistan.

Foreign Minister Bilawal Bhutto Zardari also thanked Chinese leadership, “Grateful to President Xi Jinping, Foreign Minister Wang Yi and the people of China. Chinese consortium of banks has today signed the RMB 15 billion loan facility agreement, the people of Pakistan are grateful for the continued support of our all weather friends.”, FM Bilawal said in a tweet.

Pakistan on Wednesday signed a RMB 15 billion ($2.3 billion) loan facility agreement with a Chinese consortium of banks which is expected to aid the depleting foreign exchange reserves and depreciation of local currency.

The financial development was confirmed by Finance Minister Miftah Ismail on his official Twitter handle.

He said the agreement was signed on Tuesday between Pakistan and the Consortium of Banks, revealing that the inflows are expected within a couple of days.

“We thank the Chinese government for facilitating this transaction,” he said.

Earlier, Pakistan and International Monetary Fund (IMF) reached a deal for the release of a US$1 billion tranche after the latter gave its nod to the budgetary adjustments for fiscal year 2022-23.

According to officials of the finance ministry, the Fund has agreed to the budgetary estimates set for the next fiscal year and the economic policies of the country.

“The IMF will soon release a handout confirming the staff level agreement between the two sides,” they said.